Oz has about *twice the debt per capita of the USA, and so far during this boom our resources income has not even been able to keep up with our fresh spending, much less pay down any of the debt.
Heavy debt is a disastrous liability if deflation attacks incomes.
Do any of our prime ministers-in-waiting have a plan for dealing with Oz debt?
Remember that politicians are pragmatists. If an issue, no matter how threatening, is not a voting issue for the electorate, it's not an issue for them either.
Consider whether resources tax increases would have even got mooted if Oz debt was a political focus.
* Refer Section 11.2 of "Australian Property Bubble" at Wikipedia for more info on Oz debt.
(Note - I'm offline for a day or two now so can't respond fast if anyone replies.)
